1. Governmental Spending
Chapter 10 Review
Governmental Spending

2. Terms/Vocabulary distribution of income crowding out effect
intergovernmental expenditures
line item veto
spending cap

3. Terms/Vocabulary public sector appropriation bill national debt
discretionary spending
budget deficit

4. Concepts Categories of spending at all levels
What is the Federal Government responsible for?
What is the State Government responsible for?
What is the Local Government responsible for?

5. Concepts Gramm – Rudman – Hollings Bill
What is it?
What does it do?
Omnibus Budget Reconciliation Act (1993)
What are its main provisions?

6. Concepts
What is the difference between federal budgets and state budgets?
Discretionary Spending
What is it?
Examples
Budget Enforcement Act (1990)
What does it do?
What are its main provisions?

7. Concepts Transfer Payments Budget Approval System
What are they?
What are they used for?
What levels of government participate in these?
Budget Approval System
How is the federal budget constructed and approved?
What are the differences between debts and deficits?

8. Concepts “Pay as you go” provisions Crowding out effect
What is the economic effect of this?
What role does the Federal Government play?
Government Spending
Level of combined government consumption versus the nation’s GDP.

9. Pg.285

10. Pg. 285

11. Pg. 285

12. Federal Deficits and Debt

13. Pg. 269

15. Essay Topics
How does the Federal debt effect the average citizen? Why should the debt issue be important? According to the graph given, what is the ‘cost’ of the debt?

16. Essay Topics
Describe how the crowding out effect, as shown in the graph, affects businesses and individuals.

17. Essay Topics
Describe the Balanced Budget and Emergency Deficit Control Act of 1985 / Gramm-Rudman-Hollings (GRH). Was the initiative successful? Explain why or why not.

18. Essay Topics
Using the graph depicted, What are some logical reasons you can make for the situation presented? Make sure you use economic reasoning, vocabulary and concepts in your response.

19. Review Questions
Page 286 – 287
19,26,29,35,37